Imports of new and used cars reflected a stunning growth of 36 percent in the first two months (July-August 2026) of fiscal year 2026-27. New entrants in the automobile sector increased vehicle shipments, according to the analysts.
According to Pakistan Bureau of Statistics data, motor car imports rose 36% year-on-year to $81.4 million in July and August 2026.
The figure compares with $59 million recorded during the same period last year. Meanwhile, auto vendors raised concerns over continued used car imports despite changes to import rules.
Used Car Imports Continue
The government abolished the baggage scheme for used car imports in January. It also made pre-shipment inspections mandatory for vehicles brought under gift and transfer of residence schemes.
According to Indus Motor Company’s FY26 annual report, used vehicle imports declined to around 38,000 units in FY26 from 42,000 units in FY25.
However, former Pakistan Association of Automotive Parts and Accessories Manufacturers chairman Aamir Allawala said vendors believed dealers were still using different schemes to import used vehicles. He said 48 used vehicles entered Pakistan in May, followed by 843 in June, 1,938 in July and 1,445 in August. The gift scheme accounted for most used vehicle imports during June, July and August, according to Allawala.
Local Auto Industry Faces Pressure
Allawala said leading Chinese companies were importing between 1,500 and 2,000 new energy vehicles every month.
He added that used car imports reached around 3,200 units during July and August combined. Several locally assembled vehicles have achieved more than 50% local content by value. Allawala said local content averaged around Rs1.5 million per vehicle.
He warned that imports of completely built-up vehicles, whether new or used, could reduce demand for locally produced auto parts. According to the former association chairman, weaker demand could also affect employment across the automotive vendor industry. He stressed that job creation and protecting Pakistan’s industrial base should remain key government priorities.
The latest import figures highlight growing competition between imported vehicles and locally assembled cars as manufacturers prepare for further market expansion.
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